Bitcoin ‘in position’ for first key RSI breakout in 6 months at $85K

Bitcoin (BTC) is navigating an intriguing phase as it dances around the $85,000 mark, closing in on March 23. Recent trading activity has seen Bitcoin experiencing a promising uptick, climbing 1.5% in a single day. This increase is part of a broader trend that has boosted various significant altcoins, suggesting a revitalized market sentiment.

Popular trader Daan Crypto Trades has been closely observing the market, emphasizing that the upcoming week will be crucial for determining Bitcoin’s trajectory in the higher timeframe. He highlighted the importance of the closing position of CME Group’s Bitcoin futures, framing it as indicative of forthcoming price movements. Traders are speculating on a potential surge into the upcoming monthly close, feeding into heightened excitement surrounding Bitcoin’s performance.

The relative strength index (RSI), a key technical indicator, has drawn attention from several analysts. Rekt Capital commented on early signs of a breakout, noting that the daily RSI appears to be retesting a downtrend established back in November 2024. Such signals are often interpreted as bullish, indicating renewed strength in the price momentum.

Additionally, analyst Matthew Hyland pointed out that Bitcoin is on the verge of forming a significant bullish divergence on the weekly RSI for the first time in six months. This development is noteworthy as it may serve as a precursor to a more substantial upward movement. His insights suggest that current price levels could be replete with underlying significance as the market prepares for this potential shift.

Against this backdrop, the trading team Stockmoney Lizards has downplayed concerns regarding an impending long-term bear market. They assessed the local bottom to be around $76,000— a level that has already been tested this month. They argued that while there may be fears and panic among some traders, the overarching long-term trend channel remains intact, supporting an upward trajectory. Their interpretation of recent price action indicates that the current correction does not negate the bullish trend but rather affirms it.

While the timing of any potential upward movement is uncertain, Stockmoney Lizards suggest that the market may be trending toward a bottoming zone, although the duration of this phase is unpredictable. External factors such as news and macroeconomic conditions will likely play a role in the timeline of any corrective movements.

In summary, with Bitcoin hovering around $85,000, the market sentiment appears cautiously optimistic. Technicians and analysts are anticipating critical developments in the coming weeks that could shape Bitcoin’s next significant move. While the momentum appears to be building in favor of a bullish reversal, investors and traders alike are reminded of the inherent volatility of the cryptocurrency market and the importance of conducting thorough research prior to making investment decisions.